Bonus Depreciation — Tax Deduction Guide 2026
Take 60% first-year bonus depreciation on qualifying business assets (phasing down).
Eligibility
Businesses with qualifying new/used property
Tax Savings Calculator
Estimated Tax Savings
$1,100
At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.
Savings by Tax Bracket
Requirements
- 1New or used qualifying property
- 260% bonus in 2024
- 3Placed in service during tax year
Common Mistakes to Avoid
- !Not electing out when beneficial
- !Missing phase-down schedule
Required Tax Forms
Bonus Depreciation by State
State rules and tax rates affect the value of this deduction. Check your state for localized guidance:
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Frequently Asked Questions
What is the Bonus Depreciation?
Take 60% first-year bonus depreciation on qualifying business assets (phasing down).
Who is eligible for the Bonus Depreciation?
Businesses with qualifying new/used property
How much can I save with the Bonus Depreciation?
The average tax savings is $20,000 per year. Your actual savings depend on your tax bracket and qualifying amount.
What forms do I need for the Bonus Depreciation?
You'll need to file Form 4562 to claim this deduction.
What are common mistakes with the Bonus Depreciation?
Common mistakes include: Not electing out when beneficial; Missing phase-down schedule. Always double-check requirements before filing.
Is the Bonus Depreciation worth claiming?
With average savings of $20,000, the bonus depreciation is highly valuable. Make sure you meet all eligibility requirements.